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Time to choose. Now, you have the power.

Wednesday, 3 June 20207 minute read
Steven
Co-founder
Pure Planet

Which would you like — a variable rate renewable energy tariff? Or Pure Planet’s new, 100% Green 12 month fixed tariff? It’s up to you.

For Members on our variable tariff, Pure Planet’s new 100% Green 12 month fixed tariff is now a simple, flick-of-a-switch away in your app or online account. It takes seconds, and you’ll be on our fixed rate straightaway. There’s no 17 day joining process as there is for new Members. But you can change your mind within 14 days.

But which to choose? Stay on the variable or move to a fixed tariff?

Both offer great value. Both provide 100% clean, renewable electricity. Both include 100% carbon offset gas. Both come with zero markup on the cost of the energy — you pay no more than we pay when we purchase the wholesale energy for you. Both come with a dual fuel discount worth £30 a year. And both are backed with great, always-on, award-winning digital service — we’re also rated ‘Excellent’ on Trustpilot and are a Which? Recommended Energy Provider for 2020.

You can get a quote here.

So, what’s the difference between a variable and fixed price tariff? Which is best for you? Let’s have a look at both in a bit more detail to help you choose.

What’s a fixed energy tariff?

A fixed tariff — also sometimes called a fixed price or fixed rate energy tariff — is when the cost of your kWhs are guaranteed to stay the same for a specific amount of time. That’s for a whole year with Pure Planet’s new 100% Green 12 month fixed tariff. You know exactly how much each unit of energy is going to cost you for the next 12 months. There are no surprises. The price for a kWh is locked in, or fixed, so you have peace of mind, knowing your energy bill won’t go up during the year ahead.

But it won’t go down, either, which it might with a variable rate tariff.

As part of the deal, you agree to stay with us for the duration of the tariff contract. If you want to leave early or swap to a variable, you can, for an exit fee of £30 a fuel.

Here’s more about Pure Planet’s 100% Green 12 month fixed tariff.

What’s a variable tariff?

A variable tariff is designed to offer flexibility and freedom. The kWh rate in a variable tariff can move up or down depending on the cost of energy in the wholesale market and some other factors, such as regulated charges changing. It means if the market falls, variable rates usually fall with it. It means you don’t get ‘stuck’ on a higher rate.

Variable tariffs — sometimes called Standard Variable Tariffs or SVTs — are open ended. There are no exit fees to pay if you want to switch away. You’re free to go at any time, or to change to another tariff, which some people also see as peace of mind.

Here’s more detail on Pure Planet’s 100% Green variable tariff.

How does a fixed tariff work?

A fixed tariff needs commitment from both sides — you and us — to work well. You agree to a certain cost for your energy for the year ahead, and we will buy that energy for you in advance for the year ahead, so the price won’t change. That way, fixed tariffs can offer good value for money.

They’re not always cheaper than variable deals. It depends how suppliers price their variable tariffs and what’s happening in the wholesale market — but they are often cheaper.

How much is the early exit fee on Pure Planet’s fixed tariff?

Pure Planet charges an early exit fee of £30 a fuel to cover costs of Members leaving their fixed term contracts early — that’s £60 for dual fuel. Remember, we’ll have bought the energy a year in advance, and if someone leaves early, we still have to manage that energy. We believe the exit fee is fair, as it avoids us having to ‘spread’ any costs of an early contract end by one person to other loyal Members.

Does the price of electricity and gas change on a fixed tariff?

No, the kWh price — the cost of a unit of electricity or gas — stays the same for the length of the contract.

The price of your Membership Fee (the standing charge) is also guaranteed not to change for the duration of the fixed contract term — today, that’s £8 a fuel, which includes VAT.

With a fixed tariff will my costs be the same every month?

Not necessarily! That depends on how much energy you use — and whether your Direct Debit needs to change. Remember, it’s the kWh price that is fixed. The amount you use is not fixed. One important tip: if you’re looking to reduce the cost of your energy, one of the best things you can do is make sure your home is well insulated. Don’t waste money heating the sky, it’s bad for your bank balance and the environment.

So, if you use more or less than expected your overall costs will change — and your monthly Direct Debit may have to change too. Fixed rate means for the price of each unit, not your overall costs.

Will my Direct Debit be the same every month?

That depends! If your consumption changes against the forecast during the year, your Direct Debit will change — up or down to match.

And don’t forget, we adjust your Direct Debit between winter and summer months — it’s set to be a little more in the colder, darker months when people typically use more energy, and a little less in the warmer, lighter months.

How much does Pure Planet’s 100% Green 12 month fixed tariff cost?

Here are the costs. Prices change around the country — as they do with every supplier — because of the different transport costs of getting the energy to your home in each region. These ‘transmission’ costs are regulated and are not set by Pure Planet. The underlying costs of the energy is the same in every case, though. You can see the rates for your area here. Just pop in your postcode.

How much does Pure Planet’s 100% Green variable tariff cost?

Here are the costs for each region around the country.

Ball park, what’s the difference in cost between Pure Planet’s variable and fixed tariffs today?

It works out about £50 a year on average. Though no one is ever really average! But, if you were, and you were using precisely the Ofgem average of 2,900kWh of electricity and 12,000kWh of gas a year our fixed tariff would cost £849 a year. This compares to the variable which, for now, is coming in at £902. Obviously, the savings will be more for higher users, and less for a lower user. Today’s saving’s aside, fixing your rate may help with your personal finances, if you’re happy to budget a year ahead. But then again, the variable may work out best if wholesale rates fall again.

It’s a Brave New World at Pure Planet. Now, you can fix or stay flexible with a variable; you pays your money and takes your choice.

Now, you have the power to choose.

Steven
Co-founder